The Pennsylvania Supreme Court recently ruled the state gambling law imposing different tax rates on casinos depending on their size violates uniformity standards in the state constitution. The court gave lawmakers 120 days, or a deadline of January 26, to fix the situation but the legislative session recently ended with no resolution. However, Dauphin County and Penn National Gaming, the parent company of Hollywood Casino at Penn National Race Course, signed a memorandum of understanding that will allow the county to continue to receive .5 million in annual “local share assessment” payments from the casino, through the first half of 2017.
Penn National Senior Vice President of Public Affairs Eric Schippers said, “In the wake of the Supreme Court decision, we supported a legislative fix that would ensure our LSA payments continued uninterrupted, but unfortunately the House and Senate could not agree on an approach. Having always enjoyed a strong relationship with Dauphin County and our host municipalities, we quickly offered to sign an MOU preserving the LSA payments until at least June 30 to ease the communities’ concerns about these critical revenues pending a long-term legislative solution.”
County Chairman Jeff Haste said, “We greatly appreciate Penn National Gaming stepping up to the plate and voluntarily offering this MOU to reassure our county and local municipalities and nonprofit beneficiaries that the essential LSA funds will continue uninterrupted.”
The MOU will take effect January 27, 2017, unless the court extends the deadline or if the legislature cannot finalize a legislative solution. The Senate may vote on a bill that resolves the issue when lawmakers return in mid-November. The measure also includes a plan to legalize internet and fantasy sports gambling in the state, which would generate an additional $100 million in revenue for this year’s budget.
Last year Hollywood Casino in East Hanover Township brought in $13.5 million in revenue for Dauphin County, which uses half of its annual slots revenue for grants for local projects. Since 2008, Dauphin County has received more than $106 million in local share funds for infrastructure improvements, public safety and public health-related programs.
